Economic Conditions for the Las Vegas Valley November 2007
Housing Conditions:
- Foreclosure/Short Sale Listings (1/3/3008): Total Listings 23973; Foreclosures Commenced: 1244, 5% of all listings; Short Sales: 4131, 17% of all listings; Bank Owned Listings: 2183, 9% of all listings.
- New Home Sales (October 2007, units sold): 1170 Year Change -45.5% (excl condo conversions, highrises)
- New Home Sales (October 2007, median price): $298,056 Year Change -13.6% (excl condo conversions, highrises)
- Existing Home Sales (October 2007, units sold): 1529 Year Change -47.9%
- Existing Home Sales (October 2007, median price): $259,363 Year Change: -10.6%
- New Home Permits (October 2007): 1840 Year Change +114%
- Rental Rate (MLS Monthly Average December 2007): $1531/month
My analysis: Resale listings are down almost 2500 from a month ago. Foreclosures commenced listings are down for the first time in over 6 months, short sale and bank owned listings are up slightly. The rental market has been consistently rising since November 2006. Fire sale prices remain attractive to both long term investors and buyers tired of paying rent. New construction falling prices prompt the single family building permits to jump 99.8% from last year and 195.4% from month prior. REO property seeing price reductions and absorption to compete with new construction.
New Residents/Employment Conditions:
- New Residents (November 2007): 5626, Year Change -7.4%
- Total Employment (October 2007): 940,400, Year Change +1.0%
- Unemployment Rate (October 2007) 5.1%, Year Change +27.5%
My analysis: The rising unemployment rate concerns me. Availability of jobs will not keep new residents streaming in to town. Could be tied to construction jobs lost and lack of home equity money for home improvement services
Tourism/Gaming Conditions:
- McCarran Airport Total Passengers (October 2007): 4,065.348 Year Change +0.3%
- Gaming Revenue (October 2007): $1,001,317,799, Year Change +12.5%
- Visitor Volume (October 2007): 3,786,802, Year Change -0.2%
- Convention Attendance (October 2007): 388,475, Year Change -21.2%
- Hotel/Motel Occupancy (October 2007): 92.3% Year Change +0.7%
My analysis: Gaming revenue tops an impressive $1 Billion for October, even with Visitor Volume down slightly and Convention Attendence down considerably.
Sources: Salestraq, Home Builder's Research, Greater Las Vegas Association of Realtors, Nevada State Gaming Control Board, Nevada Department of Motor Vehicles, McCarran International Airport, Las Vegas Convention & Visitor's Authority, Nevada Department of Employment, Training and Rehabilitation
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